I don't think 2023 really has any bearing on the 2021 and 2022 entries (the software doesn't look forward). Again, the time spent on each business is the same 100% for each on both years, and the sq. ft. split is the same (the square footage is how I decided to split the two businesses). The small business that showed a slight loss of course washed out to $0 deduction for both years. The profitable business had virtually the same expenses year over year, certainly not enough difference to change the deduction by so much (we're talking expenses within $1000 difference between each year).
It looks to me like the tax deduction rules changed between these years, but I can't find any data to support that, so it just doesn't make sense.
There was a loss carryover for the business with the loss, but that isn't applied because there's no home office deduction, and is thus carried over to 2023, so again, that shouldn't change the deduction amount on the profitable business. 🙂
